Samsung Launched its own Payment System

Samsung Electronics launched its own payment system called Samsung Pay. Currently the service is available only to residents of South Korea, but Samsung promises to soon come up with the novelty on the world market.

Kārlis Dambrāns

To pay for goods, it is enough for Samsung Pay users to apply their smart phones to the reader at the store checkout. Among the gadgets that have support systems appear Galaxy S6, Galaxy S6 Edge, Galaxy S6 Edge + and Galaxy Note 5. Additional key condition is tied to the service payment card to be issued by the bank, supporting Samsung Pay.

According to the developers, the service can be used for most of the traditional banking operations, which in the near future will allow to completely abandon the cards. The technology of magnetic bit data, used by Samsung, is a significant progress made by the South Korean company after the acquisition of the company LoopPay.

- As consumers increasingly rely on their mobile devices in their daily lives, MasterCard is pleased to be a partner with Samsung and offer Samsung Pay to holders of our cards around the world, - said Cheryl Guerin, CEO of MasterCard.

Earlier, the South Korean company reported on the results of II quarter 2015. Samsung’s profit continues to fall due to weak sales of smart phones. The semiconductor business showing strong growth, yet it did not help avoid falling shares.

In April-June 2015, net profit of Samsung was 5.8 trillion won (about $ 5 billion), which is 8% less than a year earlier. The company's profit has been falling for five consecutive quarters. Operating profit declined at an annual rate of 4% to 6.9 trillion won ($ 5.9 billion), while sales - by 7% to 48.5 trillion won ($ 41.6 billion).

Division of Samsung IT & Mobile Communications, responsible for the development, production and sale of smart phones, has an operating profit of 2.8 trillion won ($ 2.4 billion), which is 38% less than the previous year.